Gazumping occurs when a seller accepts an offer from one buyer and then accepts a higher offer from another. This can become common when there is a lack of property on the market or a quick rising market

For the seller:

Would you? Difficult situation. Your moral judgement may come into question. In the UK (not in Scotland where once an offer has been accepted it becomes binding), there is nothing to stop you from accepting a higher offer or withdrawing your property, right up to the moment of exchange of contracts. Just remember, do unto others as you would have them do unto you.

If you receive another offer once you have accepted one, you may decide to offer all parties the chance to submit their best & final offers via My Yannups. Then you can determine who is the most qualified to purchase your property. Be careful, sometimes the highest offer can be made with emotion and not with financial aptitude.

If you have instructed an Estate Agent or Property Professional make sure they supply you with as much information as possible. Take their advice. They will have a lot of experience dealing with gazumping.

For the purchaser:

Do you believe in karma? What goes around comes around. First and foremost, can you really afford it? You will need to have your ducks in a row. The other buyer, whose offer has already been accepted, may match your offer or even gazump your gazump! Alternatively, the whole transaction could fall apart. The seller may refuse your offer as a point of principle. Do your sums. Tell your solicitor what you are doing. It's not illegal. It's just potentially unethical and really depends on your point of view and your desire to acquire.

Exclusivity agreements can help to avoid gazumping. These involve the seller signing an agreement stating that during a specified exclusivity period they will not enter into any other agreements or negotiations with anyone else. You may ask for an exclusivity agreement when you submit your offer in My Yannups.

Some insurance companies offer gazumping insurance policies to cover fees you might have incurred if you are gazumped.

Yannups cannot except any responsibility for decisions made.

For further information Law of Property (Miscellaneous Provisions) Act 1989.